A person whose spouse has died within the tax year and who may file a joint tax return for that year. Additionally, the surviving spouse can file joint returns for the next two years if they remain unmarried and maintain a household as the principal residence for a dependent child.
Stock Options
[stok OP-shuhnz]
What is the definition of Stock Options?
Financial derivatives that provide the holder the right, but not the obligation, to buy or sell a specified number of shares of a company's stock at a predetermined price within a specified time period.
Using Stock Options in an Example
A company grants an employee stock options as part of a compensation package, allowing the employee to purchase 1000 shares of the company's stock at $10 per share within the next five years. If the company's stock price rises to $20 per share, the employee can exercise the options to buy the shares at the lower price of $10, potentially doubling their investment upon selling the shares at the current market price.
Using Stock Options in a sentence
During the meeting, the CFO explained the benefits of offering stock options to employees, highlighting how it incentivizes performance and aligns their interests with the company's growth.
Related Terms
Swap
A financial contract in which two parties agree to exchange streams of payments over a specified period, based on different indices such as interest rates, foreign exchange rates, or equity indices, applied to a notional amount. Swaps typically do not involve the exchange of principal.
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